Late Night Gas Pump Shock

I’m pretty happy that the mighty mustang is parked out front and staying there for the most part.  Every time I do make it out, I nearly faint from the changes that I see in gas prices.  I thought I’d share some links with you about what’s going on.

First, from Reuters: High gas prices hurt U.S. confidence: Reuters/Ipsos poll. It could also hurt the President’s approval rating.

Rising U.S. gasoline prices have damaged confidence in the country’s future and forced Americans to change their spending habits and lifestyles, a Reuters/Ipsos poll released on Wednesday found.

The proportion of people who believe the United States is on the wrong track jumped 5 points to 69 percent from March, the poll found, the highest wrong-track figure in an Ipsos poll since President Barack Obama took office in January 2009.

More than six of every 10 Americans have cut back on other expenses and reduced their driving as a result of the rising gas prices caused by tumult in North Africa and the Middle East.

The increase in energy costs also hurt Obama’s approval rating, which dipped for the second consecutive month to 46 percent — his lowest Ipsos poll rating since early December 2010.

“That’s all a function of gas prices. People are feeling the pinch at the pump,” said Ipsos pollster Cliff Young.

“Increased gas prices have a direct impact on the pocketbook, and there is very little lag time between rising gas prices and its effect on presidential approval and confidence,” he said.

There’s also some concerns that higher gas prices could hurt this very anemic recovery.  Gas is one of those expenditures that folks usually can’t avoid without buying a better vehicle or getting a different commute to work.  That means in the short run, high gas prices hurt people because they can’t adjust to them easily.

Gasoline prices are soaring toward $4 a gallon, a threshold that some analysts say will damage the fragile economic recovery and crimp consumer spending just as families are planning their summer vacations.

Higher prices saddle businesses with higher transportation costs, causing them to either swallow them or pass them along to already strapped customers. As gasoline costs go up, consumers are left with less money to spend elsewhere. And there is evidence that the hike at the pump is beginning to push drivers off the road.

Gasoline prices, which are approaching record levels, “are going to have a very profound effect on the economy,” said Peter Morici, an economist at the University of Maryland.

D.C. resident Amber Sutton, who drives 25 miles each way to her job in Woodbridge, said rising gasoline prices have caused her to cut back on restaurants and other entertainment.

“I already was spending a ton on gas,” she said. “But now it’s absolutely ridiculous.”

The average price for a gallon of regular gasoline Monday was $3.79 — up more than a dime from the previous week and 93 cents from a year earlier, according the Energy Information Administration. In California, the average is now $4.16, and prices are above $4 a gallon at some stations in the District and elsewhere.

Prices have risen so high, so fast that some market analysts predicted a sell-off in the short term. That sentiment sent crude oil prices tumbling Tuesday for the second consecutive day, dragging stock markets down about 1 percent, as evidence grew that escalating prices are beginning to threaten the global economic recovery.

Stephen Gandel writing for Time Magazine suggests that this price level might be the “breaking point”. This analysis uses the average amount that American consumers generally budget for gas.

Americans are spending much more than they typically do at the pump. Relatively high gas prices have made that a problem throughout this recession, but the recent increase has only made it worse. For the past 19 years, (that’s as far back as the Census data, where retail sales come from would let me go) on average Americans have spent about 8% of their overall retail purchases on gas and other gas station related items. The number has generally been around 9% this recession. And in March, for the first time since the beginning of the recession, that number hit 11%. The highest the figure has been in the past 19 years is 12% and that was in March 2008, which is when Bear Stearns collapsed and was really the start of the financial crisis. It stayed at 12% until September 2008, when Lehman went under taking the rest of the economy with it.

But even 11% could be some sort of breaking point. The last time the figure rose to 11% was in November 2007. And that is right around the time when the economy shifted from creating jobs to losing them. What’s more, in past recoveries Americans in general have spent much less of their income on gas. In 1993 and 2003, for instance, Americans spent between 7% and 8% of their purchases at gas stations.

Read the rest of this entry »


Our Contrived Fiscal Crisis and the President who buys into it …

Federal deficits always go up big and automatically during two events.  That would be wars and recessions.  We have had two wars going on for about 10 years now and we’ve had the deepest recession since World War 2.  Getting rid of the two wars and solving the residual problems of unemployment would eliminate any potential future fiscal crisis.  Any economist will tell you this.  It’s not a secret we keep from the world.  Passing huge tax cuts and laws that remove nearly all capital and all types of businesses incomes from the pool of revenue sources only exacerbates the revenues problems you get during recessions and expenditure run-ups that come from running wars.

We’ve had excessive war spending before.  Our country was born with a lot of money borrowed from the Dutch.  The Civil War and both World Wars–especially number two–placed our federal deficit and debt at astronomical levels of GDP.  Did our country crash and burn because of the actions of John Adams, Abraham Lincoln or the spending during World War 1 or World War 2?  Did you feel that life in the 1950s and 1960s and the children born then were oppressed by excessive debt?

Of course not.

Federal Debts and Deficits are functions of the size and health of the economy underlying the obligations.  We have plenty of taxable assets and businesses making money.  You can tell how risky the market for our Federal debt is by looking at the yields on Government bonds and Treasuries.  The current yields for Treasuries are listed right here. They are at near historic lows and they are still selling.  Nothing in that market indicates any reticence by any participant to buy American Debt obligations.  The ability to tax and raise taxes as well as print money is a unique function of government.  We can do both.  If we’d have let the Dubya Bush tax cuts just expire we would’ve closed the deficit gap and reduced the debt by more than anything than is on the table right now.  That would include the disingenuous and malfeasant Ryan plan. It also includes the the one that will come from the White House today at 1:35 est.

We need to put taxing capital back on the table.  That includes dividends, capital gains, and vast inheritances and trust funds.  We need to remove tax loopholes and subsidies to corporations.  We do not need to remove the last vestiges of safety nets standing.  There appears to be no one brave enough in Washington DC to say that but I will join the bow tie set in shouting just that.  It is time to stop subsidizing incompetent business owners and time to invest in the country and its people.  Washington DC has the nation’s priorities all wrong.

The White House provided no more specifics on the four steps to be offered in his afternoon speech at George Washington University. But an official said his plan would “borrow” from the recommendations of the 2010 fiscal commission that Obama empaneled, but whose proposals he never fully embraced.

“The president will make clear that while we all share the goal of reducing our deficit and putting our nation back on a fiscally responsible path, his vision is one where we can live within our means without putting burdens on the middle class and seniors or impeding our ability to invest in our future,” the official said.

Republicans–as eloquently stated by former budget Director David Stockman–have a tax fetish.   Republicans are refusing to put any taxes on the table.  Rand Paul is considering filibustering the increase in the debt ceiling. It appears some of these folks are so disturbingly ideological and economics-disabled that they will let the US go “bankrupt” in the only way possible it could do so.  They will allow the US to default on its debt obligations.  The Republican Party seems ruled by insane people at the moment.  The Democrats, however, are ruled by folks that appear to be playing into right wing memes to appeal to some independents.  So, why are we only left with poisonous choices?

Some of the Democratic base is finally waking up to the truth about Obama. He has no core Democratic values.  We’re about to see a Democratic president put the cornerstones of Democratic policy on the bargaining table in an effort to appease some folks during the re-election cycle.  I’m wondering if it’s all not just a little too late.  Ever since the real economists left the building, White House Policy has grown more and more Republican.

Key liberal groups, which helped elect Obama in 2008, are raising concerns that he has given up political ground to Republicans, allowing the message of reducing government to trump that of creating jobs and lowering the unemployment rate.

Seizing on Friday’s deal, which would cut $38.5 billion from the fiscal 2011 budget, activists on Tuesday threatened to sit out the 2012 presidential campaign if Obama goes too far with further cuts.

“The fundamental problem in our country right now is unemployment and a jobs crisis, not a deficit crisis,” said Deepak Bhargava, executive director of the Center for Community Change, an advocacy group for the poor. “It appears the president is fighting on the wrong terrain and is conceding that the only thing we should be talking about is how to bring down the deficit.”

The clash over government spending — coming as Obama prepares to make a major speech on fiscal discipline Wednesday — is the latest example of the frayed relations between the president and a broad coalition of union and activist groups.

The details of the budget compromise as well as the way that the Health Care Reform act was rammed through congress have shown that Obama is more than eager to get something, anything passed than to fight for reform that would actually reflect either public opinion or traditional Democratic Values. Poor black women from the District of Colombia were  nearly the first ones thrown under the budget cutting bus.  Which previous US Democratic President would have sold them out?

To get the trade-off on the policy riders, Democrats had to give on spending — to the tune of the largest budget cuts ever. There’s a $1.1-billion cut across the board for discretionary spending and dozens of nips and tucks all over government, from Justice Department programs to subsidies for co-ops in the new health care law to the Pell Grant program for low-income college students.

I am going to watch this speech.  I’m only hoping some of the disgruntled chat coming from real Democrats materializes into something substantive after it happens.

DeFazio said Monday that Democrats haven’t put enough pressure on Obama.

“That’s what the House did wrong in the last Congress, and in part why we lost is we never pushed back, no matter how wrong he was or how off-base he was; we never pushed back,” DeFazio told MSNBC.

“There are a number of us in the caucus now pushing back very hard on our leadership,” DeFazio said. “Who knows where they’ll end up, but maybe we can take enough D’s with us to make them uncomfortable and to make them stick with making the president act like a Democrat.”

The Democrats’ frustration with Obama is hardly new. Liberals were furious in December when the president caved to GOP demands that Congress extend tax cuts for the wealthiest Americans. More recently, many liberals have questioned the wisdom and constitutionality of launching military attacks on Libya with prior approval from Congress.

Behind closed doors, Democratic leaders are frustrated that Obama hasn’t been more involved in the big policy fights of recent months, including the spending battle.

The way to get to this President is through his re-election efforts and his ego.  Hopefully, a few groups will stop facilitating the cave-ins and start fighting for the country’s interests.   You can watch the President’s speech on CSPAN at this link. I have my bucket o’ Nerf balls ready and I’m warming up for the first pitch of the 2012 presidential campaign season.  Join me as we share the pain and none of the gain.


FCIC Report is very Illuminating

The Financial Crisis Inquiry Commission (FCIC) is a congressional sponsored study into the reasons for the Financial Crisis. They were authorized by the President in May 2009. They have issued their final report and are disbanding. Google FCIC and you will find their information is being maintained by Stanford University. The published report is available on the website and at booksellers (ISBN 978-1-61039-041-5). It is more than 500 pages long. I have personally purchased about 15 books on the Financial Crisis over the last two years. (I know I should get a life). Each book discusses a separate segment of the crisis. This report is the most comprehensive book to date and is very readable by a person interested in the subject.

The commission was chaired by Phil Angelidies and former congressman Bill Thomas. There are eight additional commissioners appointed by the Democratic and Republican party. They had a staff of 60 people. They held hearings in Washington and locations in states hardest hit by the Real Estate bubble.

The first chapter summarizes their findings and they are quite illuminating on the many facets of the Financial Crisis. They dispel many myths and examples are provided below. One can definitely say we had less government in the Finance world. The evolved system was unsustainable. The end result was the crash of September 2008.
Conclusions of FCIC
1-The Financial Crisis was avoidable

Despite the “once in a 100 years” admonitions of regulators and politicians, this crisis was avoidable. The document does a thorough job, point by point highlighting and disputing the many actions in the last 20 years.

2-Failures in Financial Regulation and Supervision proved devastating to Financial markets

Greenspan was authorized to stop the writing of toxic mortgages despite the rising evidence that they were massive and detrimental. In 2004, the Federal Reserve could have denied loosening of capital reserves from 12/1 to 30/1. In other words, they would need $1 dollars in the bank for every $30 dollars of assets. This is considered very high leverage.  In 2000 the government declined to regulate Credit Default Swaps (Derivatives). Repeal of Glass-Steagle allowed mixing banks and Insurance companies. Citi bank was acquired by Travelers Insurance immediately. Under the regulation of the Federal Reserve Bank of NY (Tim Geithner) Citi was one of the first banks to get into trouble and require a massive government bailout.

3-Dramatic failures of corporate governance and risk management at important financial institutions, key cause of the crisis.

Many banks (not all) acted recklessly took on too much risk with too little capital to address the crisis, being very dependent on short term funding which evaporated as the crisis evolved. They were not able to raise capital to address demand claim of customer. In short they were not able respond to a run on the bank. This is called a liquidity event. Recall that Investment banks were lightly regulated and did not have access to the FED window for emergency loans. They relied on unproven software to evaluate their risks. In short they loaded up on Real Estate securities which turned toxic and they could not absorb the losses. This was done despite the fact that they knew the underwriting of the real estate loans was poor. Goldman Sachs recognized this and curtailed purchasing of bad loans and they survived.  The financial community was not able to police itself, requiring a massive government bailout. Risk people identified the problem and were ignored.

Read the rest of this entry »


Budget Standoff Basics

Pirates of the Rich and Crazy

Is it just me or does John Boehner seem like he’s in over his head?

I thought I’d dig up some references for you on exactly what a shutdown of the Federal Government means and what’s at issue here.  ProPublica has a great FAQ up with some basic facts on what will be impacted, what won’t be effected, and what’s at stake.  Here’s a short summary from them of the Status Fail.

The GOP and the Obama administration are currently locked in a standoff over a difference of $7 billion to $30 billion—a miniscule amount of the total $3.5 trillion budget. (OMB Watch, an open government group, has a thorough account [1] of the budget battles that led up to this point.)

The Washington Post’s Ezra Klein has a simple summary [2] of the GOP’s budget proposal, put forward by House Budget Committee Chairman Paul Ryan on Tuesday: It lowers corporate taxes and taxes on the wealthy, extends the Bush tax cuts permanently, calls for repeal of both the health care law and Dodd-Frank financial reform law, and freezes discretionary spending at 2008 levels.

The Obama administration has offered to cut $33 billion from current spending levels but hasn’t given many specifics about what those cuts would entail

The biggest issue that appears to be happening is that Boehner keeps changing the bar and is being forced to say no deal on certain cuts demanded by folks like their religionist base on items like Planned Parenthood Funding.   Steven Benen asks if Boehner is actually willing shut down the government over the minuscule funding for Planned Parenthood. This is definitely not Barbara Bush’s Republicans around the beltway these days. Also included in the hostage negotiations is the Clean Air Act.  Republicans want to stop the government from monitoring air pollution.  Hell, this isn’t even Richard Nixon’s Republicans.

Republicans want to cut off Planned Parenthood and gut the Clean Air Act, but instead of pursuing legislation to achieve their goals, they’re insisting that this be part of the budget. Democrats can’t go along with this nonsense, and John Boehner is too weak a Speaker to tell his caucus to act like grown-ups, so the entire process is unraveling.

This has led to talk about the GOP shutting down the government over abortion, but even that’s not quite right — Planned Parenthood is already prohibited from using public funds to terminate pregnancies, and has been for many years. What we’re talking about here is Republicans shutting down the government over access to contraception and family planning services.

For all of those folks that thought the Republicans weren’t ready to go crazy over their crazy, extremist religious views, this should wake them out of their stupor.  These folks are trying to shut down access to birth control by screaming abortion.  This kind of mean and stupid should hurt.  You can also check out WT for a long list of what kind of things will be shut down or go unpaid because the xtian Taliban hate Planned Parenthood.  They must hate soliders because that’s one of the groups of people that won’t be able to get paychecks either.

IRS tax audits would be halted in their tracks, this weekend’s National Cherry Blossom Festival Parade in Washington canceled, and national parks and the Smithsonian shuttered if Congress can’t reach agreement on annual spending and the government shuts down at midnight Friday.

The military, federal law enforcement and other key officials would still be at work, earning pay – except their paychecks would be halted until the government funding stream is turned back on.

The Federal Government’s personnel bureau has posted information about which Federal employees will be furloughed.  There’s an old study up on what happened the last time the Republicans shut down the government under Newt Gingrich that appears to be the blueprint for Federal Response.  The ProPublica site contains a series of links to a lot of information on these topics in particular.  They cite a NYT article for this information.

The New York Times has a handy list laying out how various government services might be affected [16]. Some things that would continue mostly unaffected are military operations, the Federal Reserve, the postal service, and Medicare and Social Security payments. An accompanying story also outlines some potential scenarios [17] in more detail:
The National Zoo would close, but the lions and tigers would get fed; Yellowstone and other national parks would shut down. The Internal Revenue Service could stop issuing refund checks. Customs and Border Patrol agents training officials in Afghanistan might have to come home. And thousands of government-issued BlackBerrys would go silent.

… In any shutdown, the government does not completely cease functioning, of course. Activities that are essential to national security, like military operations, can continue. Air traffic control and other public safety functions are exempt from shutdowns. Federal prisons still operate; law enforcement and criminal investigations can continue.

The Hill has just quoted Harry Reid as saying he doesn’t think a shutdown will be averted.  Again, the issues don’t seem to be the level of spending, it’s appeals to climate deniers and members of the xtian Taliban that seem to be at issue here.

Reid blamed a partisan dispute over Planned Parenthood and other hot-button ideological issues for the stalemate, while Republicans said they had offered reasonable spending cuts and Democrats were to blame for the impasse.

“The two main issues holding this matter up are the choice of women, reproductive rights, and clean air,” Reid said. “These matters have no place in a budget bill.”

Reid said the president and Democratic leaders would not give any more ground in the talks.

“We have given everything that we can give,” he said

Frankly, this has gotten worse than even I imaged it could be.  Clearly, people that are voting Republican have brought such extremists to the House that it’s unlikely negotiations of any kind will be successful unless Boehner cracks a whip.  At the moment, all he appears to be doing is dithering, drinking, and crying.


Fighting Back … Ballroom Days are Over

May take a week, and it may take longer.
They got the guns, but we got the numbers.
Gonna win yeah, we’re taking over.
Come on!

Yeah!

Your ballroom days are over, baby.
Night is drawing near.
Shadows of the evening
Crawl across the years.

Jim Morrison, from “Five to One”

I’ve spent the last six months watching this country’s policy makers throw all common sense and empirical evidence on the US economy to the wind. My jaw just drops when I consider what the Republicans have proposed under the flag of austerity and how the Democrats entertain them.

BostonBoomer and I spend a lot of time on the phone with each other. We’ve been each other’s support system having much in common as older, divorced women gone back to school and social justice activists feeling exiled in some kind of shared virtual gulag. We remember the protests and actions that we took at a younger age to demonstrate against war and the treatment of minorities and women.  BB was active in antiwar protests.  I was an avid women’s rights activist in the 70s and 80s, having found out that just getting good grades and hard work weren’t going to be enough for me to break into white male dominated bastions.  It’s maddening when you think of all the time you spend on your education and doing the right thing and find out that what really gets you ahead is your ability to fit certain biological characteristics and social status.  All those things I tried to change back then are being undone.  All over the country, privileged, wealthy people and corporations are using political donations and power to seek advantage like never before.  This is not healthy for our country or our future.  We need to end their Ballroom Days.

It’s heartened both of us to see union workers in the US and many citizens in the MENA region stand up to authority and demand their right to participate in policy decisions that impact their lives. All over the world, the immense transfer of wealth and national assets to a small elite–the uberwealthy few representing mostly inheritance dynasties–has occurred with the help of political lap dogs seeking donations and parochial interests.  It seems we may have reached a tipping point.  Some yearning-to-be-free democracy contagion has created a new call for activism to protect the interests of the many against the pillaging of the few.  It’s brought people to the streets all over the world and created scapegoats for rapacious states.  From whistle blowing of war crimes by Bradley Manning to shouting for no more political or economic prisoners in Northern African nations, we see ordinary, educated, middle class people taking to the streets and shouting enough!  We’ve fed the cheats long enough!

It’s about time.

Allison Kilkenny at The Nation has a new article up called “The Resistance Has Begun” that lists recent political demonstrations and unrest.  Her article was inspired by a post by Chris Hedges–This is What Resistance Looks Like–on the increasing number of political protests occurring around the country.   Hedges writes on the importance of the protests.  Are we looking at renewed activism from the people who’ve been hurt by the power class-enabling policies of the last 30 years?

Chris Hedges has this to say.

The phrase consent of the governed has been turned into a cruel joke. There is no way to vote against the interests of Goldman Sachs. Civil disobedience is the only tool we have left.

We will not halt the laying off of teachers and other public employees, the slashing of unemployment benefits, the closing of public libraries, the reduction of student loans, the foreclosures, the gutting of public education and early childhood programs or the dismantling of basic social services such as heating assistance for the elderly until we start to carry out sustained acts of civil disobedience against the financial institutions responsible for our debacle. The banks and Wall Street, which have erected the corporate state to serve their interests at our expense, caused the financial crisis. The bankers and their lobbyists crafted tax havens that account for up to $1 trillion in tax revenue lost every decade. They rewrote tax laws so the nation’s most profitable corporations, including Bank of America, could avoid paying any federal taxes. They engaged in massive fraud and deception that wiped out an estimated $40 trillion in global wealth. The banks are the ones that should be made to pay for the financial collapse. Not us. And for this reason at 11 a.m. April 15 I will join protesters in Union Square in New York City in front of the Bank of America.

“The political process no longer works,” Kevin Zeese, the director of Prosperity Agenda and one of the organizers of the April 15 event, told me. “The economy is controlled by a handful of economic elites. The necessities of most Americans are no longer being met. The only way to change this is to shift the power to a culture of resistance.  This will be the first in a series of events we will organize to help give people control of their economic and political life.”

I’ve written recently about the Social Contract of 20th century America and how that contract has been broken by politicians seeking to empower the monopolies and oligopolies that fill their political accounts with booty.  Things have gotten so blatantly amoral that the very same folks that destroyed the Gulf ecosystem and took 11 lives and many livelihoods through careless management decisions rewarded themselves with bonuses and ‘best safety’ records with no concept that people might find that appalling. This was a repeat performance of the situation where executives of investment and commercial banks took huge bonuses right on the back of their bad management decisions that brought near US economic collapse and massive bail outs with federal funds. Also, BP is right back applying for drilling rights having really not made things right on either the human or the environment accounts for their last cost-cutting, profit gouging adventure in ignoring safety for the sake of quick profits.

When the social costs of doing business exceed the benefits of doing that business for every one but a few, the society needs to take a hard look at why it tolerates such behavior.  Forcing other people to bear the costs of your business or your consumption is wrong and that’s exactly what most business subsidies and lax regulations do.  When businesses can push their costs off on society or consumers of certain goods can push their costs off on society, that market becomes distorted and dysfunctional.   The market price does not reflect true costs. It will overproduce harmful goods and drain resources that would be better placed elsewhere.  The only way to push these costs back to the producers and consumers of  costly activities and end the dysfunction is through legal prosecution or tough regulation.   The idea that’s been propagated that regulation serves no purpose in a market system is part and parcel of the problem.

Opaque, vague markets do no one any good.  They serve as breeders of Ponzi schemes like that of Bernie Madoff. Markets that don’t force the true cost of doing business back on the producer are no good either.  They take precious scarce resources and allocate them to activities that are not worthwhile because prices and costs are understated.  There are mounds and mounds of microeconomic studies that show how insidious markets can be when they are distorted by things like information asymmetries or supply-enabling protection.  All of these activities set up winners and losers.  In most cases, ordinary people are  the losers.  It takes money and power to access the special treatment offered by politicians and their laws.  You only get those huge passes and benefits if your get to call yourself a corporation in this country.  You can collect a lot of money for being inefficient for some reason.  Businesses in this country are considered to be ‘individuals’ for freedom of speech issues but they go unprosecuted for murder every day.  Just talk to grieving families of those 11 workers who died on the Deep Water Horizon in the name of increased production and lower costs.  Only a sociopath could murder 11 people with safety shortcuts then provide incentives for good safety records to the instigators of the bad decisions.  The only offset that we have to the kind of power and access achieved by lobbyists and corporate interests is civil disobedience and protests.  Protest we must!

Kilkenny’s article lists a number of protests that are brewing around the country.  These include examples in New York State, New Hampshire, Wisconsin, Ohio, Indiana and other average cities with average US citizens.  Is this a Middle Class Awakening going viral?  Here’s some more from Chris Hedges on how concentration of power and money in monopoly banks has warped our policy agendas and priorities. Our incomes from hard work are being skimmed by paper shuffling fees paid as bonuses to agents with no productive purpose but market distortion.

The 10 major banks, which control 60 percent of the economy, determine how our legislative bills are written, how our courts rule, how we frame our public debates on the airwaves, who is elected to office and how we are governed. The phrase consent of the governed has been turned by our two major political parties into a cruel joke. There is no way to vote against the interests of Goldman Sachs. And the faster these banks and huge corporations are broken up and regulated, the sooner we will become free.

Bank of America is one of the worst. It did not pay any federal taxes last year or the year before. It is currently one of the most aggressive banks in seizing homes, at times using private security teams that carry out brutal home invasions to toss families into the street. The bank refuses to lend small business people and consumers the billions in government money it was handed. It has returned with a vengeance to the flagrant criminal activity and speculation that created the meltdown, behavior made possible because the government refuses to institute effective sanctions or control from regulators, legislators or the courts. Bank of America, like most of the banks that peddled garbage to small shareholders, routinely hid its massive losses through a creative accounting device it called “repurchase agreements.” It used these “repos” during the financial collapse to temporarily erase losses from the books by transferring toxic debt to dummy firms before public filings had to be made. It is called fraud. And Bank of America is very good at it.

There is nothing free market about government-installed and enabled monopolies.  We achieve nothing as a society by buying into the delusion that all government does is destroy the business environment when all evidence points to their enabling of the worst business practices.  There is nothing remotely efficient about markets that can use public resources on the cheap to underprice goods and services, hence making them more marketable than they should be.  There is no efficiency in letting producers of products and services pass the costs of their bad management decisions on to middle class and working people.  You cannot blame government workers for the current economic failings.  You can however, blame Bank of America, Republican Governors who hand out tax cuts indiscriminately, and federal subsidies of inefficient businesses. Huge corporations and rich people gobble up tons of public resources via subsidies, tax breaks, and use of infrastructure.  Many governors have literally given away their states treasury and resources courting businesses that cost them more than they bring to that state in jobs or revenues. The big lie is that corporations are overtaxed and receive no benefits from state, local or federal government.  We can’t afford to enable that big lie. We must protest it.

Ordinary Americans cannot band together to hire lobbyists to help repair our broken Social Contract.  The only thing we have are our feet, our voices, and our votes.  Paul Ryan’s budget Anthem is just the latest in a line of assaults on reason and common sense.  It is the very definition of pennywise and pound foolish and it’s insulting.  It hypes unnecessary tax cuts and increases in pentagon spending while removing funding for public health, public education, and public information programs. It continues the effort to redistribute the incomes and the resources of the country to the very few at the cost of the very many. The only way to stop this is to protest.  Protest frequently.  Protest openly.  Protest now.  Public Policy should not be based on badly written dystopian fiction novels.

It is not illegal immigrants that have broken the American Dream.  It’s not bands of stereotyped Muslim Bedouins hiding out in caves a world apart from Main Street that’s threatening the livelihoods of American workers. It’s not poor Cuba’s last vestiges of Marxism or crazy-like-a-fox Hugo Chavez. It’s time to stop falling for their straw men enemies. What has taken the American Dream away from so many is  the greed and power lust of a few people that have completely usurped the nation’s policy makers.  It’s time to remind them that they may have the guns, but we have the numbers.